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Basel III rules are expected to inflate banks' risk-weighted assets, forcing some financial institutions to reduce their balance sheets to comply. UBS, Deutsche Bank, Credit Suisse and Barclays, which have large trading-asset books, are expected to be most affected by the change. The banks have a number of ways to mitigate the effect, such as opting for exchange-traded derivatives instead of over-the-counter derivatives, according to Reuters.

If Basel III rules on capital were in effect, Goldman Sachs' risk-weighted assets would increase from $451 billion to about $750 billion as of June 30, the company said. The change would force Goldman to set aside more capital to meet requirements. The firm likely will make changes to lower its risk-weighted assets, but the situation highlights a concern for Wall Street banks. "There are some businesses ... that might be diminished," said David Viniar, chief financial officer at Goldman.

Basel III rules are expected to inflate banks' risk-weighted assets, forcing some financial institutions to reduce their balance sheets to comply. UBS, Deutsche Bank, Credit Suisse and Barclays, which have large trading-asset books, are expected to be most affected by the changes. The banks have a number of ways to mitigate such effects, such as opting for exchange-traded derivatives instead of over-the-counter derivatives, according to Reuters.

Basel III rules are expected to inflate banks' risk-weighted assets, forcing some financial institutions to reduce their balance sheets to comply. UBS, Deutsche Bank, Credit Suisse and Barclays, which have large trading-asset books, are expected to be most affected by the change. The banks have a number of ways to mitigate the effect, such as opting for exchange-traded derivatives instead of over-the-counter derivatives, according to Reuters.

Basel III capital and liquidity rules for banks will force Switzerland's UBS to reduce its exposure to risk-weighted assets. The bank said it will not need to raise capital to meet the requirements, but it will make other changes. "There are many steps that [UBS] can do to reduce this effect, from charging more to clients, paying themselves less, and just exiting some businesses," Peter Thorne, an analyst at Helvea, wrote to investors.